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$116.9 MILLION BUDGET APPROVED

Money for library renovations, a new park and a new fire station are included in budgets Carlsbad City Council members adopted last week for the fiscal year that begins July 1.

City officials said they expect their general fund to accumulate a $4.1 million surplus during the year, based on projections that revenue from property tax, sales tax and hotel tax will continue to surge.

That surplus would allow Carlsbad’s reserves to climb from $63 million to $67.1 million. But council members decided to devote $2 million of the $4.1 million to paying down the city’s long-term pension liability, which is estimated at $126 million.

With $65.1 million in reserves, the city would still meet its goal of having reserves equivalent to at least half of its yearly expenses, which have hovered around $115 million.

The $116.9 million general fund budget for the new fiscal year is a 1.4 percent increase over the budget adopted for the fiscal year that ends June 30.

The budget includes increased expenses to cover operations at Alga Norte Community Park, a new 32-acre park and aquatic center on Poinsettia Lane and Alicante Road.

In addition, the city plans to relocate Fire Station No. 3 from Chestnut Avenue and Catalina Drive to Robertson Ranch East. The change is expected to reduce emergency response times to six minutes in northeastern Carlsbad, city officials said.

A separate, $44.7 million budget for construction projects includes $1.6 million to renovate Cole Library and $500,000 to upgrade Dove Library. Money for the library renovations was the only item that generated controversy during the council’s budget debate Tuesday night.

Councilman Mark Packard said he was concerned the city was devoting too many resources to libraries, which already have the highest resident satisfaction rate of all city facilities and services.

“Are we neglecting areas that have lower satisfaction rates?” he asked.

Four library supporters urged the council to approve the money. Packard eventually agreed, saying city staff had assured him Carlsbad had enough money to support all city services effectively.